Coincheck Set to Refund Customers Following Massive Hack

Coincheck, a bitcoin exchange service which experienced an extensive hack, believed to be the biggest in the world, has pledged to refund customers.

Coincheck is an exchange service for selling and buying bitcoin and other cryptocurrencies that are based in Japan. It said that it will reimburse anyone who lost digital cash as the outcome of the theft which amounted to $534m (£380m).

The news regarding the heist first surfaced last Friday when Coincheck stopped withdrawals, a move which drove the price of bitcoin lower. Japan is the biggest market of bitcoin in the world.

Read more: Price of Bitcoin is Falling as Coincheck of Japan Stops Withdrawals

The company then revealed that it had been targeted late on Thursday evening by some hackers who stole the 10th biggest cryptocurrency in the world in terms of market cap which is called NEM.

The company said that over a quarter of a million users were affected. The users will be reimbursed out of the own fund of Coincheck.

In a statement, the company stated: “We realise that this illicit transfer of funds from our platform and the resulting suspension in services has caused immense distress to our customers, other exchanges, and people throughout the cryptocurrency industry, and we would like to offer our deepest and humblest apologies to all of those involved.

“In moving towards reopening our services, we are putting all of our efforts towards discovering the cause of the illicit transfer and overhauling and strengthening our security measures while simultaneously continuing in our efforts to register with the Financial Services Agency as a Virtual Currency Exchange Service Provider.”

Over $400m were stolen from Mt Gox resulting in the collapse of the company in 2014. It was the largest ever theft of cryptocurrency during that time. It took some time for the cryptocurrencies to be able to recover. However, it encouraged Japan to propose specific rules that are aimed at cryptocurrencies, the first government ever to do so.

Read also: Majority of People Predict The Drop or Collapse of Bitcoin in Six Months